The bill HB2318 amends section 28-339 of the Arizona Revised Statutes, concerning the State Match Advantage for Rural Transportation (SMART) Fund. It authorizes biannual redistribution of unawarded SMART Fund monies, modifies fund allocations, expands eligible uses of awarded monies and award eligibility, adds award repayment procedures, and enhances the application review process. The bill specifies that the Arizona Department of Transportation (ADOT) must suballocate 20% of SMART Fund monies to various categories based on population size and allows for redistribution of unawarded funds to ensure each category receives a share. It also expands application eligibility to any entity eligible for a federal grant and requires ADOT to determine if applications meet federal grant requirements.

The bill prohibits ADOT from approving expenditures from the SMART Fund unless they are made as prescribed, and it adds to the allowable uses of the fund, including reimbursement for federal grant matches and funding for design and engineering services that meet federal standards. It also increases the administrative use of SMART Fund monies by ADOT from 1% to 5% annually. Additionally, the bill stipulates that projects in counties with a population over 1 million or municipalities in urbanized areas of such counties are ineligible for SMART Fund monies. It also introduces procedures for rescinding awards if applicants receive funding from another source and requires repayment of expended monies within one year of rescission. The bill eliminates the 15-day notification requirement for applicants who fail to secure a federal grant and makes other technical and conforming changes.

Statutes affected:
Introduced Version: 28-339
House Engrossed Version: 28-339
Chaptered Version: 28-339